Resolution 6206 - Approves FY25 TBID Work Plan & BudgetIIIIIIII II II IIIIIIIII IIIIIIIIII IIIII IIIII IIIII IIIIIIIIIIIIIIIIIIIIIIIIIIIII II IIIIIIII IIII Page: I of 23 9
Debbie Pierson, Flathead County MT by AP 7/3/ 2024 4:46 p4 OD
Return to:
City Clerk
City of Kalispell
P.O. Box 1997
Kalispell MT 59903-1997
RESOLUTION NO.6206
A RESOLUTION APPROVING THE WORK PLAN AND BUDGET FOR THE FISCAL
YEAR 2024-2025 FOR THE KALISPELL TOURISM BUSINESS IMPROVEMENT
DISTRICT AS RECOMMENDED BY ITS BOARD OF DIRECTORS.
WHEREAS, on May 3, 2010, pursuant to Section 7-12-1101, et seq., MCA, the City of Kalispell,
passed Resolution 5425 creating a Tourism Business Improvement District and on
December 16, 2019, pursuant to 7-12-1141, et seq., MCA, the City of Kalispell
passed Resolution 5954 renewing the District; and
WHEREAS, the board of directors for the Tourism Business Improvement District appointed by
the City Council of the City of Kalispell has recommended to the City Council a
.0 work plan and budget for the Tourism Business Improvement District for the next
fiscal year, including a request to increase the bed tax assessment from $2.00 per
night per room to $4.00 per night per room; and
WHEREAS, on June 17, 2024, a Public Hearing was held regarding the proposed TBID FY
2024-2025 budget and work plan, including the bed tax assessment increase, with
three comments given; and
WHEREAS, having given adequate consideration to the work plan and budget presented, as well
as the proposed method of assessment the City Council now finds that it is in the
best interests of the City as well as the District and the properties therein to accept
the work plan and budget, as well as the proposed increased assessment method.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
KALISPELL AS FOLLOWS:
SECTION 1. The proposed work plan and budget of the Tourism Business Improvement
District, attached hereto Exhibit "A" and fully incorporated herein by this
reference, is hereby approved and adopted for the fiscal year 2024-2025.
SECTION 2. The proposed assessment formula of the Tourism Business Improvement
District is hereby approved and adopted for the fiscal year 2024-2025. That
assessment formula to be applied against all properties within the Tourism
Business Improvement District shall be $4.00 per occupied room per night.
PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF
THE CITY OF KALISPELL, THIS 1 ST DAY OF JULY, 2024.
ATTEST:
Mark Johnson
Mayor
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AirAee Brunckhorst, CMC
City Clerk
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WWW.DISCOVERKALISPELL.COM
DISCOVER
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FY25 DMO
PLAN & BUDGET
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WHO WE ARkill
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Kali, is an unfiltered mountain town that remains true to
itself. Kalispell is a place that believes in living with intention,
supporting one another and making the most of every day.
It's a place that accepts you as you are and encourages
intentional exploration, all while soaking up fresh mountain
air, playing on our glacial -fed waters, tasting Montana's
culinary offerings and rubbing elbows with the locals.
In Kalispell -'---Or" -Or" ^' " is our mantra, its a call that
grounds us in and to this beautiful corner of the world we
call home. To truly understand what venture boldly means in
Kalispell, we invite you to learn more about its three -pronged
definition:
iiaet ui., -Our roots and traditions run deep. We live with
intention and make bold moves with a firm understanding of
who we are, where we come from and how we'll grow.
Stewardship - As residents of Montana, we serve as
stewards of this special place. Whether you're here for a
minute or a month, we ask visitors to be mindful of the
impact they have on this place, from public lands to local
businesses.
Stronger Together - As with anything in life, we know we're
better together. Kalispell is a place for dreamers, makers,
doers, creators and intrepid spirits to live fully and boldly
embrace adventures. A community known for coming
together to solve problems, putting collective energy around
getting things done.
Discover Kalispell is a Destination Marketing and
Destination Stewardship organization, dedicated to fostering
a vibrant year-round tourism industry through a
community -centric approach. We are committed to actively
engaging in a collaborative, multi -stakeholder effort to
preserve the rich cultural heritage and environmental vitality
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STRENGTHS
The Parkline Trail, a two-mile linear trail through downtown and connecting to the Great
Northern Rail Trail has spurred redevelopment in the downtown core, adding to the goal of
18-hour vibrancy and walkability throughout the heart of the city.
The City of Kalispell saw 1,180 new residential units constructed between 2022 and 2023 with
79% of those units multi -family, improving the availability of attainable and workforce housing.
Kalispell is home to the Conrad Mansion Museum, Hockaday Museum of Art, Northwest
Montana History Museum, Wachholz College Center, Glacier Symphony and Chorale, art
galleries, street art, juried arts & crafts shows and events.
The Wachholz College Center, a performing arts center located at the Flathead Valley
Community College, includes a 1,000-seat auditorium, lecture hall and flexible event space.
The center has featured a star-studded line up of year-round national -caliber performances
and events.
Glacier Range Riders, a Pioneer league baseball team playing at Glacier Bank Park in Kalispell.
Kalispell is in the center of iconic natural landmarks: 32 miles from the entrance to Glacier
National Park, 10 miles to Flathead Lake, and surrounded by 2 million acres of Flathead
National Forest. Eleven state parks in the valley provide trails, interpretative visitor services,
and water -based activities.
Kalispell's Glacier Park International Airport ranked #3 in boardings for airports in Montana in
2023. GPIA saw a total of 455,837 enplanements, an 8.4% increase over 2022. Residents and
visitors have more options for business or leisure travel through increased seat capacity
year-round. GPIA is undergoing a $150 million terminal expansion to handle increased traffic
over the next 20 years. Phase 1 of the new terminal opened in March 2024. Glacier AERO, a
non-profit organization represented by Flathead Valley business and tourism industries,
serves to increase winter and year-round flights through revenue guarantees and other
partnerships with the airlines.
Logan Health is the region's independent heathcare system. 2023 saw the merger of Logan
Health and The Billings Clinic creating a state-wide health system for Montana.
Workforce Flathead, led by the Discover Kalispell Chamber convenes students, job seekers,
educators and employers to support the jobs of today and grow jobs for the future including
for the travel and hospitality sector. Additionally, the Chamber -led Childcare Action Steering
Council launched four childcare action teams resulting in identifying 500+ childcare slots over
the next two years.
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CHALLENGES
TRAVEL AND HOSPITALP
Visitation patterns in northwest Montana have shifted since the pandemic, summer months now
have available lodging capacity. Visitation trends can be impacted by the U.S. economic
conditions, travel costs, and local factors such as GNP vehicle reservation system and climate
conditions such as low snow levels this winter.
Hotel lodging demand in Kalispell decreased 3% during 2023, and 10% since 2021. RevPAR had
seen steady growth since 2021 based on solid occupancy and strong ADR. The recent double-digit
drop in occupancy has created a decrease in revenue Jan -Mar 2024. Booking for the late spring
and summer are trending lower than normal, shorter planning windows may attribute to that
trend. (STR)
Short term rental inventory in Kalispell and Flathead County experienced a fourth year of increase
during 2023, which impacts hotel demand. Although short term rental inventory continues to
build, 2024 data shows a slowing with a decrease in OCC, ADR and revenue. Supply may have
surpassed current demand. (AirDNA)
2023 saw adjustments to the business market, primarily with increasing interest rates and
construction costs prompting a slowing in commercial and single-family developments.
Glacier National Park has continued the vehicle reservation pilot system for summer of 2024.
Separate vehicle reservations are now required for the west side of the Going -to -the -Sun Road,
North Fork/Polebridge entrance and Many Glacier areas of the park, May 26 - September 8, 2024,
6am - 3pm.
Climate conditions continue to become more unpredictable and severe creating challenges when
promoting outdoor recreation and outdoor sports and events. Seasonal weather impacts include
low snowpack, wildfires and unhealthy air quality, low water levels impacting water recreation on
Flathead Lake and fisheries throughout the region. Outdoor recreation plays an important role as
a driver of visitations for Kalispell and northwest Montana. As climate events become more
frequent and severe, the need for product development to attract and retain visitors becomes
greater.
Aquatic Invasive Species post a threat to the Flathead Basin waterways. Introduction of non-
native species disrupts the balance of native ecosystems threatening the recreation viability in
our area. Discover Kalispell will continue to support FWP's communications of Clean, Drain and
Dry and watercraft inspection stations.
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DISCOVER KALISPELL'S
STRATEGIC ROLE IN FY25
A strategy to build economic vitality through tourism balanced with community
stewardship and development.
We acknowledge that while promoting destinations remains a cornerstone for DMOs, it's equally
vital to address the challenges posed by community growth. Discover Kalispell is committed to
integrating destination stewardship, management, and development efforts to not only support
local businesses but also ensure sustainable growth and prosperity for our mountain
community and tourism economy.
MMGYNext Factor identified a broad mandate for the role of a DMO. A DMO serves to facilitate
community alignment, government relations and advocacy, sustainability, social inclusion and
belonging, economic workforce and development and resident engagement and support.
In this marketing plan, it is evident that Discover Kalispell's mandate is also centered on
fostering balanced and strategic destination marketing initiatives. Our priority lies in preserving
the heritage and cherished way of life for residents, while also actively participating in
conservation efforts for open spaces. Moreover, we aim to safeguard the Montana tourism
industry from funding disruptions and counter any misrepresentation of tourism's value to
northwest Montana.
DESTINATION MARKETING
SS% OF ORGANIZATIONS'S OPERATIONS
Increase visibility and engagement with target audiences through various digital advertising
channels.
Build awareness of Kalispell as a destination for sports and group events through targeted media.
Develop comprehensive campaigns in direct flight markets, prioritizing flights that run outside of
the June -Labor Day timeframe.
Implement retargeting strategies within evergreen campaigns to re-engage with users who have
previously interacted with the brand.
Utilize AI -powered platforms to optimize advertising and target relevant audiences.
Maintain and enhance DiscoverKalispell.com to provide engaging content, easy to use trip
planning tools, and resources for business development marketing.
A promotion
strategy that is
aligned with a
traveler's journey
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AWARENESS
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Paid and Earned
Media, Social
Media, Website,
Tourism Sales
Visitor Guide,
Newsletters,
Blogs
Event calendars,
Town & Trails
Pass, wander
Map, Visitor
Information
Services
DESTINATION STEWARDSHIP/
MANAGEMENT
15% OF ORGANIZATIONS'S OPERATIONS
Develop visitor services appropriate to today's consumer. Use online resources,
Al tools, and local partners to disseminate visitor resources to promote Kalispell as a destination
and promote TBID and Chamber member businesses.
`_ - - - - 11. `"Foster community engagement and the beautification and
vitality of Kalispell through utilization of Discover Kalispell's Community Development Grant
funding.
Continue to build relationships with partners to deliver accurate, up-to-
date information seamlessly to locals and visitors during crises such as wildfires, smoke, floods,
and low water levels.
Grow Discover Kalispell's accessibility resources by being better informed as to
what Kalispell has and needs to accommodate travelers with accessible limitations. Help inform
local businesses to improve accessibility resources.
Educate and build resources about Kalispell and Discover Kalispell to
provide to businesses in the Flathead area, particularly those with front desk or customer service
operations.
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DESTINATION DEVELOPMENT
(BUSINESS DEVELOPMENT/SALES)
30% OF ORGANIZATIONS'S OPERATIONS
Develop a marketing and sales plan to grow sports tourism
wos king cooperatively with current and future sports venues
and clubs.
Continue to build connections and secure booked business
in the military reunion, government and association
segments.
Drive continued growth in the M&C segment securing RFP's
for group events strategically maximizing the utilization of
convention space within TBID conference hotels and other
large venues.
Attend trade shows to connect with organizers of events,
sport and group business, targeting tour operator, meeting
planner and sports shows that provide direct contact with
planners.
Outreach to the local business community to solicit and
incentivize leads for group business through the Bring Your
Meeting Home to Kalispell program.
DEFINE OUR AUDIENCE
WHO WE WISH TO ATTRACT - nFFINITION OF nisrnw:AR KALISPELL'S HIGH -VALUE VISITOR'
VISITORS WHO:
Who stay more than one night in Kalispell.
Who are Interested in fall, winter and spring travel.
Who are respectful of natural resources and strive to recreate responsibly.
Who are interested in local restaurants, craft beverages and shopping.
Who seek adventures outside of the heavily traffic activities and recreation areas.
Who are seeking sporting events, destination events and accessible travel resources.
Who are business travelers.
Who are group travelers - meeting plannings, domestic and international tour trade, other
group travel such as reunions, incentive travel and niche interest groups.
Mobile location and credit card data informs Discover Kalispell's seasonal evergreen and
retargeting campaigns.
2023 NON-RESIDENT VISITORS THAT STAYED AT IF r
IN KALISPELL:
2,700,000 visitors
Average group size - 2.5; average age 52
Top U.S. geographic markets of origin: WA, FL, MN, CO, UT, IL, ID, AZ, WI, TX
52% of travel groups had no first time visitors
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MARKETS % OF TOTAL DEVICES
Spokane 13.3%
Missoula 10.7%
Great Falls 6.3%
Seattle 5.4%
Salt Lake City 4.7%
SPENDING BY CATEGORY (% OF TOTAL SPEND)
1.
Food - 42.2%
4.
Gas & service stations - 8.9%
2.
Retail - 20.9%
5.
Transportation - 6.0%
3.
Accommodations - 17.1 %
6.
Outdoor Recreation - 1.6% (zartico)
"TISITOR CREDIT CARD SPENDING IN KALISPELL FOR 2023
Credit card spending by domestic non-resident visitor was $218 Million, a 4.5% decrease YOY.
Credit card spending by international visitors equaled $15 Million, a 28% increase YOY. 93% of
that spending was by Canadian visitors.
'OP SPEND IN KALISPELL BY DOMESTIC CMAS:
Q1: Missoula, Seattle, Salt Lake City, Bozeman, Helena
Q2: Missoula, Seattle, Phoenix, Los Angeles, Bozeman
Q3: Missoula, Seattle, Los Angeles, Phoenix, Bozeman
Q4: Missoula, Seattle, Bozeman, Los Angeles, Helena, Spokane (visa Destination Insights)
EMERGING MARKETS
Leisure - direct flight markets (new and flights with increased seat capacity): Dallas, Burbank/LA
area, San Diego, and Sonoma County.
Sports Tourism - with an increasing number of indoor and outdoor sports facilities in our area
Discover Kalispell is placing an increased focus on attracting youth and adult sports and
adventure events.
Groups - segments looking for unique venues and experiences.
WHAT RESEARCH SUPPORTS*
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Refine the strategy to focus on boosting tourism during the fall, winter, and spring seasons,
backed by data on occupancy rates and resident sentiment. This data reveals untapped potential
to draw more visitors beyond the peak season. While emphasizing promotions for shoulder
season visitations, it's important to note a decline in summer occupancy, highlighting the need for
continuous destination marketing and sales efforts throughout the year.
Kalispell average annual occupancy (2023): 58%
Average occupancy June -September (2023): 78%
Average occupancy October - May (2022-2023): 48%
Flathead County has over 12,000 jobs supported by nonresident travel (ITRR 2022). While shoulder
season promotions are prioritized, the decrease in occupancy during the summer months
indicates the necessity for year-round destination marketing and business development initiatives.
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The Montana resident attitudes interactive data shows that residents want a balanced approach
towards tourism in the state. Flathead County residents recognize that while overall benefits
outweigh the -negative (49% agree), only 22% agree that if tourism increases in Montana the
overall quality of life for residents will improve.
The Montana Travel Experience Survey of nonresidents shows that the trip planning window
continues to decrease. 1-4 weeks ranks high as a time frame to start planning route and sites to
visit. Planning activities is primarily done less than 1 week before the visit.
In that same study, repeat visitors to Montana had a positive response to changes of flourishing
downtowns, increased amenities and better roads and signage. But those visitors were dismayed
at the increase in travel costs, crowds, and wildfire smoke and adverse weather conditions in MT.
(Institute for Recreation Research at the University of Montana)
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TOURISM DIGITAL MARKETING 'TRENDS
Most Facebook videos are watched without sound, highest reach have text overlay.
Use stories that link to your website, tell a story and have a min of 4 slides.
118.3 million leisure travelers (78% of all leisure travelers) participate at some level in cultural
and heritage activities while on their leisure trip.
Most U.S. adults use YouTube and Facebook, about half use Instagram.
Most popular from greatest to least: YouTube, Facebook, Instagram, Pinterest, TikTok.
The best opportunity for video engagement is less than 1 minute.
Facebook recommends keeping videos to around 15 seconds, research shows 47% of the value
in a video is delivered in the first 3 seconds.
Instagram videos that average 26 seconds receive the most comments.
Viewers want storytelling within 7-15 seconds, as well as video series to follow.
(Dave Serino, TwoSix Digital)
Global digital advertising spend has increased 10.6% since 2022 and 18.9% since 2021. (Meltwater)
Dentsu Global Ad Spend states that what's driving the increase in spend is economic stabilization,
digital innovation and cyclical occurrences such as elections.
Between 2022 and 2023 the ad buy on Meta increased by 61 %, Google programmatic display by
75%, search ads by 14%. As CPM increases it drives up CPA. (Linkedln Digital Advertising Prices)
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U.S. MARKET REVIEW - TRAVEL DEMAND
Despite recent slowing, growth trends largely continue across sectors:
U.S. domestic leisure: Trips have fully recovered to
2019 levels, though growth has decelerated due to
tighter credit conditions and the restarting of student
loan payments.
Modest lodging demand growth in the U.S. will be
supported by household prioritization of travel, a
continued rebuilding of business travel and group
events, and a rebound in international visitation.
The latest STR/Tourism Economics lodging forecast
expects RevPAR in the U.S. to grow 4.1 % in 2024,
moderately slower than 2023 (4.9%), with an expected
3.1 % gain in ADR.
International inbound: Pre -pandemic levels are not
expected to return until 2025 as the strong dollar and
visa wait times continue to pose challenges, but 2023
ended with international visitation at 84% of 2019
levels. The U.S. is experiencing a highly unusual travel
trade surplus with outbound travel outpacing inbound
travel.
Travelers still feel generally optimistic about their
financial circumstances —especially in comparison to
the average American adult —and remain financially
committed to travel.
A recent Longwoods International study reports 26%
of travelers say financial concerns will greatly impact
their decision to travel within the next six months —
emphasizing the importance of value perception
especially among lower -income earners.
(Tourism Economics, STIR, Future Partners, Longwoods International)
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GOAJ.,S, TACTICS S OBJECTIVES
Increase visitation to meet the needs of Kalispell's visitor distribution goals of
seasonality, niche markets and diverse audiences.
Targeted campaigns promoting fall, winter and spring travel, niche activities and
inclusivity using paid media, website marketing, owned media and digital asset acquisition.
Create 6 new short form videos for organic and creative storytelling. Utilize
retargeting strategies within DK seasonal evergreen campaigns to re-engage users linking
them to Instagram and DK trip planning tools.
: Tourism sales initiatives to attract sports, events, group travel, tour trade, and
meetings and convention segment bookings.
Attend trade shows for direct contact with planners, host FAMs, conduct out -of -
market sales calls and client events and produce sales and promotion collateral and
resources.
Execute 20 sales calls or client events. Produce 2 videos to use in group and
sports tourism sales promotions. Award incentive grant funding to secure large group
events.
Enhance destination storytelling through earned media.
Host travel media to achieve earned media in targeted publications, websites and
social media. Select journalists that are on assignment or have ability to pitch for quick
turnaround, or influencers with adequate following. Articles and posts should be designed
to promote the travel season during which they were hosted.
%_-Olel Host two travel media events in FY25 during fall, winter or spring, with
itineraries that highlight Kalispell's unique activities and assets that are available to visitors.
4 Encourage residents and visitors to travel and recreate responsibly and
�� respectfully. Align visitor education programs with community values.
Tnrtie Deploy educational resources to visitors through owned and sponsored media
channels. Support messaging that is important to community stakeholders and land
managers. Offer seamless crisis communication services to both locals and visitors.
r'-' - - - To educate visitors on Leave No Trace and responsible recreation principles,
schedule a minimum of one post per month on each DK social media channel, utilize DK's
Treat it Like Grandma's House reels and promote opportunities for volunteer and guided
Develop visitor services that align with leading trip planning and booking
trends, enhancing opportunities for an exclusive and genuine travel adventure.
Increase connection with visitors beyond the traditional VIC services during
the trip planning phase and when in -market. Use online resources, Al tools and local
partners to disseminate visitor resources and promote member businesses.
Deliver visitor guides, Flathead Valley maps, informational displays to
partners including hotels, shops, restaurants, airport and rental cars. Use trackable
(paid) QR codes to gauge ROL
Be engaged in destination, product and experience development that
benefits residents and visitors.
Provide grant funding for new and expanding events that generate room nights
stays in Kalispell and for community/visitor asset development projects.
Employ community outreach programs to identify partners that can execute
two new community asset development projects.
Support tourism workforce development and hospitality training.
Provide resources to local businesses for hospitality guest services training.
Partner with Kalispell Public Schools and Workforce Flathead to promote hospitality
jobs.
Create and distribute a Kalispell visitor resource book to assist front desk
staff to relay important, up-to-date and accurate information to visitors.
Be an active partner on initiatives for natural resource sustainability.
Partner with local organizations such as Flathead Lakers, Flathead River Alliance,
Flathead Trails Association and FWP to support conservation projects related to visitor
amenities and visitor impacts.
Champion two projects led by local natural resource groups through
sponsorships, messaging, and volunteering.
BUDGET
Amount % of
Segments Budgeted budget
Administration/Operations 58,560 5%
Personnel (wages) 292,800 25%
Education/Outreach 23,424 2%
Agency Services 117,120 10%
Research 23,424 2%
Website 23,424 2%
Destination [Marketing
Marketing Resources
Pa.d Media
Earned Media/Tourism Sales
Travel/Trade Shows
Destination Stewardship/Management
Workforce development and training
Vs'tor services and communications
Community outreach, projects and grants
386,496 33%
11,712
Destination Development 234,240 20%
Event, sports and group incentives and grants
Sales - trade show, RFP platforms
TOTAL 1,171,200 100%
DISCOVER KALISPELL
STRUCTURE & TEAM
Discover Kalispell, the Kalispell Convention & Visitor Bureau, is a division of the Discover
Kalispell Chamber. Discover Kalispell is funded through two contracts with public agencies and
generates private funds through event registration fees and sponsorships. The Chamber has
contracted with the State of Montana for Kalispell's share of the lodging facility use tax since
1987. In 2010, the Kalispell Chamber/CVB assumed administration of the Kalispell Tourism
Business Improvement District (TBID) under an agreement with the City of Kalispell and Kalispell
hoteliers. The Kalispell TBID district is currently authorized to 2030.
The FY25 Discover Kalispell DMO plan serves to direct the initiatives and spending for Discover
Kalispell and inform and educate the Kalispell Chamber and TBID board of directors,
community stakeholders, Tourism Advisory Council, City of Kalispell and the state legislature.
Kalispell's two funding sources, Bed Tax and TBID, work collaboratively to facilitate the annual
DMO plan.
THE DISCOVER KALISPELL TEAM
President/CEO Discover Kalispell Chamber:
lorraine@kalispellchamber.com
Executive Director, Discover Kalispell:
Group Sales Manager:
, diane@discoverkalispell.com
, dawn@discoverkalispell.com
Marketing & Communications Manager:
marisa@discoverkalispell.com
Visitor Services Coordinator: Aeche E , info@discoverkalispell.com
2 SOUTH MAIN STREET, SUITE 205, KALISPELL, MT 59901
406-758-2811
WWW.DISCOVERKALISPELL.COM